Recovery of tax debt may be enforced against funds held in the bank accounts of a taxpayer’s debtors if the taxpayer (tax agent) fails to settle its tax debt exceeding the statutory threshold, after enforcement measures have been taken to recover the debt from funds held in the taxpayer’s (tax agent’s) own bank accounts.
A debtor is defined as an individual, legal entity, structural subdivision of a legal entity, non-resident conducting business activities in the Republic of Kazakhstan through a permanent establishment, individual entrepreneur, or person engaged in private practice who owes a debt to the taxpayer (tax agent).
For the purpose of identifying the taxpayer’s debtors, the tax authority is entitled to:
- Use data from the tax authority’s information system;
- Conduct a tax audit of the taxpayer (tax agent) to determine the settlements between the taxpayer and its debtors, as well as conduct a cross-tax audit of the debtors.
The tax authority shall send the debtor a notice requesting confirmation of the accounts receivable.
The debtor shall submit to the tax authority, in paper or electronic form, a reconciliation statement prepared jointly with the taxpayer and/or, where it is not possible to prepare such a reconciliation statement as of the date of receipt of the notice, documents confirming the settlements with the taxpayer.
If the notice requesting confirmation of the amount of accounts receivable is not complied with, the tax authority shall:
- Conduct a tax audit of the debtors;
- Issue an order suspending debit transactions on the debtor’s bank accounts within one business day following the expiry of the deadline for complying with the notice.
The tax authority shall issue collection orders against the debtor’s bank accounts for the amount of the taxpayer’s (tax agent’s) tax debt, limited to the amount of accounts receivable confirmed by one of the following documents:
- A reconciliation statement;
- A tax audit report confirming the amount of accounts receivable;
- A court decision that has entered into legal force.
Collection orders issued against the debtor’s bank accounts shall be withdrawn if the taxpayer (tax agent) or the debtor repays the tax debt.
Any amount excessively debited from the debtor’s bank accounts held with multiple banks, exceeding the amount specified in the collection order, shall be refunded to the same bank account of the debtor without requiring an application from the taxpayer (tax agent).